KT with the speed of conversion of the landlord… IPO is also speeding to reorganize its affiliates

KT reorganizes its affiliates and is speeding up the transition to the holding company. KT's online video service (OTT) season announced its merger with CJ ENM Teabing, and Sky TV and Mediagini also decided to merge. Milli's library and K-Bank are preparing for the IPO within the year. KT believes that the stock price can be raised through the reorganization of the business.

Sky TV held a board of directors on the 1st and decided to merge with Media Geni. The merger was made by Sky TV absorbing mediagini. The merger will hold 62.7%of KT Skylife and 37.3%by KT Study Ogini.

The industry sees the merger as part of KT's transition to a holding company. Earlier, KT, CEO of KT, said in March, I'm not a holding company, but I'm interested in the transition to a holding company. It is explained that KT's share price can be raised by adjusting subsidiaries, separating the headquarters business, and converting a holding company.

■ Why do KT want to switch to a holding company

There are more than 50 affiliates of KT. In the industry, if KT reorganizes its business structure, it can generate synergy among each subsidiary in various ways. In the KT body, only the role of the group command and the core assets can be left, and the new business and the affiliates can be divided and growth.

In fact, Koo has divided KT affiliates into media, finance, and customer service since his inauguration. It is also tied to affiliates that play similar roles, and also speeding up selling subsidiaries that are not suitable for 'DIGICO' direction or low profitable subsidiaries.

The reason for converting to a holding company rather than a holding company is because it has a financial affiliate. It is explained that it is impossible to switch to a holding company according to the principle of separation of Geumsan separation, where financial capital and industrial capital can own each other's sectors or can not control more than a certain stake.

In securities firms, if KT switches to a holding company, the company's value will increase. Kim Hong-sik, a researcher at Hana Securities, said, KT will increase its corporate value by switching to a holding company in the long run, promoting subsidiaries' IPOs, simplifying organizations and activating new businesses.

■ KT, restructuring affiliates… Discussion on the sale of subsidiaries

KT has a K-bank under the BC card in the financial sector. In the field of customer service, KT CS was deployed under KT IS. Recently, KT has been actively reorganizing its affiliates to strengthen its media capabilities with KT Study Ogini as a control tower.

KT established KT Study Ogini last year to strengthen its content competitiveness. At the time, KT announced that it would form a production cost recovery structure that encompasses other media business with KT Study Ogini as a core axis. KT Study Ogini will produce content and distribute it on Sky TV with the original intellectual property (IP) with Storywiz and Milli.

Since then, KT has organized Storywiz, Genie Music, and Milli as a subsidiary under KT Studio Geni. Sky TV, which is in charge of the channel, and Mediagini merged on November 1 to strengthen their channel competitiveness.

The OTT season is also a strategy to strengthen distribution competitiveness by merger with Teabing. The merger date of the season and Teabing will be December 1, and when the merger is completed, KT Study Ogini will acquire a shares of the merger and secure the three largest shareholders.

Since its inauguration, KT has been speeding up the sale of its subsidiaries. Mr. Koo has recently boldly summarizes the business sector that does not match Digico, a future KT direction, or decreases profitability. KT Powertel, a subsidiary of wireless communications, was sold to IDs in June last year, and Otopion, which developed a brand taxi operation and control system, was also sold to Narin Holdings earlier this year.

KT is discussing the direction of selling the LS Cable, which is in charge of the undersea cable. KT and LS Cable are currently coordinating the acquisition price, and negotiations are reported to be at the end. Investment Bank (IB) industry sees KT Linkers and KT Tele Cop as potential.

■ IPO's preparation of Milli and K-Bank, the outlook is

Milli's library and K-bank, on the other hand, are preparing for IPOs within the year. Milli's book was approved by the Korea Exchange on the 25th of last month. Milli's documents must submit a report within six months. The industry expects that the listing will proceed without difficulty as the Milli's book turns to the black in the first half of this year.

According to the Genie Music semi-annual report, Milli's documentary assembly, the contents business sales related to the first half of this year accounted for 21.43 billion won, accounting for 15%of the total sales of Genie Music. In the first half of this year, Milli's revenue sales amounted to 2.15 billion won and the semi-annual net profit amounted to W10.3bn.

However, K-Bank's market situation is changing, with the recent decline in the value of Kakao Bank. K-Bank has been measured on corporate value based on Kakao Bank due to the similarity of the business.

In the meantime, the industry estimated K-Bank's value from about 6 trillion won to 8 trillion won. However, Kakao Bank's market cap decreased significantly from 45 trillion won to 13 trillion won, and K-Bank's corporate value decreased from 3 trillion won to 4 trillion won. This value is analyzed that there is a gap with the expectations of K-Bank's major shareholders.

In a report on the 30th of last month, Kim Hong-sik, a researcher, said, The market cap of Kakao Bank, the rival group, has been reduced to 13 trillion won, and the growth stock is not attracting attention. It's big.

He added, KT executives should list the K-Bank at a low price to help the company's value, so K-Bank's listing is not easy.